Industrial success demands careful mix of conditions

Part of the problem is the high rents being charged in the area.

The financial reforms currently under way in the city were launched with government help, with organizations often being able to rent buildings for their use.

But for e-commerce companies, no such mechanisms have been introduced yet, said Yu.

Red Dragonfly, the leading Wenzhou-based shoe manufacturer, was also very interested in the park.

But officials in Hangzhou offered it more favorable conditions such as a tax refund for the first three years, which Lucheng district couldn't match.

Magnet for companies

Competition to attract businesses is clearly tough, but officials have high hopes of attracting some high-profile companies.

Yu said Lusen.com, a leading e-commerce company specializing in digital products, could represent its biggest success so far, and become a flagship tenant.

Lou Shaoshan, the general manager of Lusen, has agreed to move in by August, but only after Lucheng district offers him rent exemption for 10 years, which will save the company about 700,000 yuan.

Lou says a lot more needs to be done to attract further interest.

"There is a lack of support companies here, such as marketing or logistics companies.

"People in this industry put a lot of emphasis on a comfortable and modern environment. We do not see much of that at Lucheng," said Lou.

But what Lou does see is government efforts to create the kind of atmosphere which will attract businesses, and that's why he is willing to move in.

As one of Wenzhou's leading companies of its kind, he also thinks he was obliged to do something to help its development.

"The growth of any industrial park needs the example of a leading company."

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